TiVo 2008 Annual Report Download - page 35

Table of Contents
As of January 31, 2009, options to purchase a total of 22,792,242 shares were outstanding under our option and equity incentive plans, and there were
26,425,760 shares available for future grants. We have filed registration statements with respect to the shares of common stock issuable under our option and
equity incentive plans.
Future sales of the shares of the common stock, or the registration for sale of such common stock, or the issuance of common stock to satisfy our
current or future cash payment obligations or to acquire technology, property, or other businesses, could cause immediate dilution and adversely affect the
market price of our common stock. The sale or issuance of such stock, as well as the existence of outstanding options and shares of common stock reserved
for issuance under our option and equity incentive plans, also may adversely affect the terms upon which we are able to obtain additional capital through the
sale of equity securities.
We expect to continue to experience volatility in our stock price.
The market price of our common stock is highly volatile. Since our initial public offering in September 1999 through March 23, 2009, our common
stock has closed between $71.50 per share and $2.55 per share, closing at $7.26 on March 23, 2009. The market price of our common stock may be subject to
significant fluctuations in response to, among other things, the factors discussed in this section and the following factors:
• changes in estimates of our financial performance or changes in recommendations by securities analysts;
• our failure to meet, or our ability to exceed, the expectations of securities analysts or investors;
• release of new or enhanced products or introduction of new marketing initiatives by us or our competitors;
• announcements by us or our competitors of the creation, developments under or termination of significant strategic relationships, joint ventures,
significant contracts or acquisitions;
• fluctuations in the market prices generally for technology and media-related stocks;
• fluctuations in general economic conditions;
• fluctuations in interest rates;
• market conditions affecting the television and home entertainment industry and the technology sector;
• fluctuations in operating results; and
• additions or departures of key personnel.
The stock market has from time to time experienced extreme price and volume fluctuations, which have particularly affected the market prices for
emerging companies, and which have often been unrelated to their operating performance. These broad market fluctuations may adversely affect the market
price of our common stock.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our corporate headquarters, which houses our administrative, sales and marketing, customer service and product development activities, is located in
Alviso, California, under a lease that expires on January 31, 2010, and is comprised of two buildings totaling 127,124 square feet of office space. We believe
that our corporate facilities will be adequate to meet our office space needs for the next several years as we currently utilize approximately 84% of our total
office space. Our current facilities lease obligations are subject to periodic increases and we believe that our existing facilities are well maintained and in good
operating condition. The Company also has operating leases for sales and administrative office space in New York City, New York and Chicago, Illinois.
ITEM 3. LEGAL PROCEEDING
Intellectual Property Litigation. On January 5, 2004, TiVo filed a complaint against EchoStar Communications Corporation in the U.S. District Court
for the Eastern District of Texas alleging willful and deliberate infringement of U.S. Patent No. 6,233,389, entitled "Multimedia Time Warping System." On
January 15, 2004, the Company amended its complaint to add EchoStar DBS Corporation, EchoStar Technologies Corporation, and Echosphere Limited
Liability Corporation as additional defendants. The Company alleges that it is the owner of this patent, and further alleges that the defendants have willfully
and deliberately infringed this patent by making, selling, offering to sell and/or selling digital video recording devices, digital video recording device software,
and/or personal television services in the United States. On April 13, 2006, the jury rendered a verdict in favor of the Company in the amount of
approximately $74.0 million dollars.
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